This loan is
designed to assist those borrowers with bad credit or a poor credit history
to purchase or refinance a home. By
refinancing and consolidating your debts you may be able to minimise your
repayments, settle debts in default and eventually clean up your credit
rating. The level of impairment can range from arrears to bankruptcy with
interest rates determined by level of credit impairment and LVR
At some point in the
past, a borrower may have experienced
difficulty in meeting their monthly
commitments due to lack of work, in suffering
an unexpected business loss or by having a
difference of opinion with a former credit
provider. Unfortunately, in these cases the
former credit provider may have lodged a
payment default (or black mark) on their
credit report with a credit recording agency.
When applying for
finance, a default lodged on a credit report
may cause frustration as a lender may not take
the time to understand the borrower’s
explanation and surrounding circumstances on
which the default occurred.
Credit-Impaired Loans are designed especially
to assist a borrower in these circumstances.
Usually these loans incur an extra interest
rate margin and possibly extra fees and
charges
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Applicant type
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Individuals, Companies, Trusts.
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Employment requirements
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P.A.Y.G. is O.K. Self-employed must be for one
year
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Income: required proofs
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Payslips, group certificates or employer letter.
Self-employed, two years tax returns.
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Loan amounts minimum & maximum
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$100k to $650,000
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Purpose
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Owner-Occupied, or Investment
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LVR
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Maximum LVR on credit repair loans is
80% of property value* See credit
related issues below.
Prime Loans
are available up to 95% LVR to $650,000
for minor credit issues only -
such as
Unlimited Credit Enquiries (ignored) or
Telco/Utility defaults ignored 2 up to
$1,000
Specialised Securities
Highrise apartments > 50 sqm >70% LVR
Serviced apartments > 50 sqm > 60% LVR
Rural up to 100 acres > 50% LVR
Retail shops & commercial Office > up to
70% LVR
Light Industrial > $500,000 > 65% LVR
Commercial Office > $500,000 50-60 sqm >
60% LVR over 60 sqm 65% LVR
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Coded, non-coded, or either
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Either
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*Credit related issues
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Paid or Unpaid Defaults considered ( 4
up $25,000 in total) - All unpaid
defaults to be paid at settlement.
Bankruptcy above 6 months considered -
No undischarged bankrupts or Part X
arrangements
Defaults paid over 2
years up to $5,000 ignored
Arrears up to 2 months (NOT MORTGAGE
ARREARS)
Maximum LVR on credit repair loans is
80% of property value
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Variable, fixed or both
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Both
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P&I, I/O, or both
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Both
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Residency Status
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Citizens and permanent residents
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Comments, special conditions
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Not required
on loans below 80% LVR
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Approximate rate
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Final LVR &
Interest rate are dependant on location
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